AI is revolutionizing the public service: the solution to the staff shortage!

AI is revolutionizing the public service: the solution to the staff shortage!

The public service in Austria is facing a major challenge: around 41% of employees will retire in the next 13 years. This high number of retirements is forcing the government to find innovative solutions. Artificial intelligence (AI) should play a central role in combating the shortage of employees. During the budget discussions in the National Council, Federal Chancellor Christian Stocker (ÖVP) and State Secretary Alexander Pröll expressed optimism about the possibilities that AI offers to make administrative work easier.

The implementation of AI technologies in the public sector is seen as a strategic measure to curb staff shortages. Stocker and Pröll emphasized that AI should serve as support for administration without replacing employees. “We have to strengthen the skills of our employees in order to be able to take full advantage of technical progress,” Stocker continued. Comprehensive training for employees is therefore planned to ensure efficiency and the use of new technologies.

Budgeting and digitalization

For the years 2025 and 2026, the Federal Chancellery's budget has earmarked 626 million euros and 549 million euros, respectively. These funds are to be reduced through savings and a reallocation of tasks between departments. A double budget draft has already been discussed in the National Council's budget committee, with issues relating, among other things, to developments in the public service and upcoming retirements.

In the context of digitalization, funds amounting to 45 million euros (2025) and 53.2 million euros (2026) will also be made available for these years to promote AI implementation in administration. “We see great potential in digitalization to realize long-term cost savings,” explained Pröll. Despite initial costs, those responsible expect significant savings through efficiency gains.

The role of equality

Another positive aspect that was highlighted during the deliberations is the increased proportion of women in the public service, which is currently around 44%. Women are also better represented in leadership positions than before. Those responsible in the government expect that the upcoming digitalization measures could also have a positive impact on the retirement age of federal civil servants, as this is generally higher than that of the private sector.

In this context, an “AI map” is also being developed that makes it possible to expand access to digitalization and e-government. In addition, anti-Semitism is observed online, which represents another point of current political strategy measures. Pröll pointed to the need for a united European approach, and a revision of the federal government's anti-Semitism strategy is planned for the end of the year, with 38 of 43 measures in the current strategy already implemented.

With these measures, the Austrian government is clearly showing that it wants to set the course for a modern and sustainable public service. Artificial intelligence is considered a key technology that is intended to unite people and machines in the administrative process in order to create a sustainable and effective working environment.

Overall, current developments reflect the need for a rethink in the public service, against the backdrop of the foreseeable staff shortage and the challenges that digitalization brings with it. The use of AI is not only a technical but also a strategic decision for the future of administration in Austria.

For more details on budget planning and the importance of AI in public services, see reports from sn.at as well as in the press release from ots.at.